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The containerized and modular data center market size is forecast to increase by USD 54.8 billion at a CAGR of 18.5% between 2023 and 2028. The market is witnessing significant growth due to the rapid deployment of data centers, which is a key trend driving market growth. This trend is particularly prevalent in industries that require agile and scalable IT infrastructure, such as telecommunications, finance, and e-commerce. Another trend is the implementation of software-defined modular data centers, which offer increased flexibility and efficiency compared to traditional data centers. However, the lack of awareness and expertise in operating data centers, particularly in smaller organizations, presents a challenge to market growth. Despite this, the market is expected to continue expanding as businesses seek to optimize their IT infrastructure and improve operational efficiency.
The containerized and modular data center market is experiencing significant growth in the data center industry, driven by the adoption of pre-fabricated modules for data center infrastructure. Containerized data centers offer several advantages, including faster deployment, scalability, and reduced costs. These data centers are designed using standardized, interchangeable units that can be easily transported and assembled on-site. Firefighting systems, cabling, management systems, and data center assets are integral components of containerized data centers. The availability of space is a critical factor in the growth of this market, with industries such as media and entertainment, energy and utilities, edge computing, OTT platforms, 5G networks, fintech, and edutech leading the way in investment initiatives.
Furthermore, containerized data centers provide an efficient and cost-effective solution for these industries to meet their growing data center requirements. The modular nature of these data centers allows for easy expansion and customization, making them an attractive option for data center providers.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The IT and telecommunication segment is estimated to witness significant growth during the forecast period. The data center industry continues to evolve with the increasing demand for IT resources in the digital sector. Containerized and modular data centers have emerged as a solution to address capacity requirements, particularly in the context of cloud computing, big data, artificial intelligence, and mobile internet. These data centers utilize pre-fabricated modules, which can be easily deployed and expanded as needed, offering flexibility and cost savings. Containerized data centers consist of firefighting systems, cabling, management systems, and other essential data center infrastructure. They provide an effective solution for data center providers seeking to invest in new initiatives while minimizing available space.
Furthermore, these data centers are not only beneficial for large enterprises but also for SMEs and enterprise types in various industries, including digital service industries. Containerized data centers offer numerous advantages, such as energy efficiency, physical security layers, and reduced carbon footprint. Green and sustainable data center designs have become increasingly important, with continuous monitoring and construction and operation focusing on environmental impact. Value-added services, such as colocation and IT and telecom services, can be integrated into these data centers to cater to diverse client needs. Physical security layers are crucial in containerized data centers, ensuring protection against data breaches and unauthorized access. The use of advanced management systems and continuous monitoring further enhances the security of these data centers. As the demand for data centers continues to grow, containerized and modular solutions are expected to gain popularity due to their flexibility, scalability, and cost-effectiveness.
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The IT and telecommunication segment was valued at USD 5.80 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is experiencing significant growth due to the increasing demand for scalable and flexible IT infrastructure solutions across various industries. These include healthcare, government, media and entertainment, energy and utilities, and IT and telecommunications. The adoption of edge computing, OTT platforms, 5G networks, FinTech, EduTech, GamingTech, HealthTech, and ACES mobility is driving the need for containerized data centers. The use of standardized 20 feet and 40 feet containers for customized data center solutions is gaining popularity in aerospace and defense, as well as in the energy sector. Containerized data centers offer advantages such as quick deployment, easy relocation, and cost savings, making them an attractive option for businesses seeking to optimize their IT infrastructure. Additionally, the integration of containerized data centers with 5G networks and the Internet of Things (IoT) is expected to further fuel market growth.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rapid deployment of data centers is the key driver of the market. In the rapidly evolving data center industry, organizations face the challenge of deploying new data centers or expanding existing ones in a timely and cost-effective manner. Traditional data center infrastructure deployment can take up to eighteen to twenty-four months due to extensive design and construction processes. However, containerized data centers and modular data centers offer a more efficient solution. Modular data centers are prefabricated using standardized components, such as racks and IT infrastructure, allowing for deployment within six months. Containerized data centers can be available for use within four months, which is six times faster than traditional data center construction.
Furthermore, this accelerated deployment time is crucial for businesses looking to meet the demands of mobile internet, cloud computing, big data, artificial intelligence, and digital service industries. With the increasing capacity requirements in the data center market, containerized and modular data centers provide an attractive option for data center providers and enterprise types, including SMEs and large enterprises. These facilities offer value-added services such as firefighting systems, cabling, management systems, and physical security layers, ensuring data center assets are protected and operational. Additionally, containerized and modular data centers prioritize energy efficiency, carbon footprint reduction, and environmental impact, aligning with the trend towards green and sustainable data centers.
Moreover, the construction and operation of these facilities also enable continuous monitoring and improved IT and telecom infrastructure, reducing the risk of data breaches and enhancing overall IT resources. Cloud providers and colocation industry players are increasingly adopting containerized and modular data centers to meet the growing demand for AI workloads and meet capacity requirements.
The implementation of software-defined modular data center is the upcoming trend in the market. The containerized data center market is witnessing significant growth due to the increasing demand for data center infrastructure from various industries, including the digital sector. Containerized data centers, which utilize pre-fabricated modules, offer advantages such as faster deployment, scalability, and energy efficiency. These data centers are designed to support both enterprise types, from SMEs to large enterprises, and can be used for various applications, including mobile internet, cloud computing, big data, artificial intelligence, and digital service industries. Containerized data centers are equipped with essential systems such as firefighting, cabling, and management systems to ensure optimal performance and security. Data center providers are investing in these initiatives to meet the capacity requirements of their clients and offer value-added services, including continuous monitoring and construction and operation support.
Moreover, the adoption of software-defined modular data centers is gaining popularity due to their ability to improve efficiency, reduce costs, and offer flexibility. A software-defined modular data center comprises three components: software-defined networking (SDN), software-defined computing (SDC), and software-defined storage (SDS). These components enable the virtualization of physical infrastructure, allowing for better control over IT resources and physical security layers. The data center industry is also focusing on sustainability, with an increasing emphasis on green and sustainable data centers. This trend is driven by concerns over carbon footprint and environmental impact, as well as the need to meet regulatory requirements.
Furthermore, energy efficiency is a critical factor in reducing the environmental impact of data centers, and containerized data centers offer advantages in this regard due to their modular design and the ability to optimize energy usage. In conclusion, the containerized data center market is experiencing significant growth due to the increasing demand for data center infrastructure and the benefits offered by containerized and software-defined data centers. These data centers provide solutions for various applications, offer improved efficiency, and prioritize sustainability, making them an attractive option for businesses in the digital sector.
The lack of awareness and expertise in operating data center is a key challenge affecting the market growth. The market is experiencing significant growth in the data center industry, particularly among colocation and telecommunication service providers. Modular facilities, which utilize pre-fabricated modules for data center infrastructure, offer several advantages over traditional brick-and-mortar data centers. These advantages include lower upfront costs, faster deployment times, and the ability to scale capacity requirements as needed. However, some data center operators may be unaware of the incremental capital expenditures involved in the construction of modular facilities. While the upfront costs of traditional data center construction can be high, modular construction allows for the addition of modules as demand grows. Furthermore, the operation of containerized and modular data center solutions requires specialized skills and knowledge.
Furthermore, modular facilities also offer enhanced environmental sustainability, with options for firefighting systems, cabling, management systems, and other features designed to minimize the carbon footprint and environmental impact. In addition, modular data centers can be designed to support the latest technologies, such as cloud computing, big data, artificial intelligence, and digital service industries. Data center providers are increasingly investing in containerized and modular solutions to meet the capacity requirements of enterprise types, including SMEs and large enterprises, in the digital sector. These solutions offer value-added services, including continuous monitoring, construction and operation, IT and telecom, physical security layers, and data breach prevention. With the growing importance of IT resources in various industries, the demand for energy-efficient, sustainable, and scalable data center solutions is expected to continue.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cannon Technologies Ltd. - The company offers Cannon Data Campus, and Data Campus-Pods. Also, the company manufactures and supplies racks, cabinets, and data center solutions.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth in the data center industry due to its advantages in flexibility, scalability, and quick deployment. Pre-fabricated modules, which include firefighting systems, cabling, and management systems, are used in containerized data centers to ensure optimal data center infrastructure. With the increasing demand for data centers from mobile internet, cloud computing, big data, artificial intelligence, and digital service industries, containerized data centers have become a popular choice for data center providers due to their ability to meet capacity requirements. The availability of space and investment initiatives in the data center industry have fueled the adoption of containerized data centers.
Furthermore, these data centers are designed to be mobile and can be easily transported to areas with high demand for IT resources. The colocation industry is also adopting containerized data centers to cater to the capacity needs of cloud providers and enterprise types, including SMEs and large enterprises in the digital sector. Containerized data centers offer environmental benefits, such as reduced carbon footprint and lower environmental impact, making them a sustainable option for businesses. Energy efficiency is a crucial factor in the design of physical data centers, and containerized data centers are equipped with physical security layers to protect against data breaches. The integration of value-added services, such as continuous monitoring and construction and operation, further enhances the appeal of containerized data centers.
Market Scope |
|
Report Coverage |
Details |
Page number |
192 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.5% |
Market growth 2024-2028 |
USD 54.8 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.12 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 44% |
Key countries |
US, UK, China, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Alphabet Inc., Bladeroom Group Ltd., Cannon Technologies Ltd., Cisco Systems Inc., Datapod, Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, Etix Everywhere France SAS, FURUKAWA Co. Ltd., GREEN4T SOLUCOES TI LTDA, Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., IE Corp., International Business Machines Corp., Langley Holdings Plc, Rittal GmbH and Co. KG, Schneider Electric SE, and Vertiv Holdings Co. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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